China's hotel industry sees fluctuations in H1

(ECNS) -- China’s accommodation consumption market showed clear fluctuations in the first half of 2026, according to a report released recently by the China Hotel Association. 

A food delivery robot serves visitors at the western artificial island of the Shenzhen-Zhongshan Link, May 31, 2026. (Photo: China News Service/ Chen Jimin)

Data from the National Bureau of Statistics showed that China’s retail sales of consumer goods rose 1.3% year on year in the first half of 2026, while the value added of the accommodation and catering industry increased 5.0%, broadly in line with the 5.2% growth of the service sector.

The Hotel Consumption Index recorded peaks in February and May, driven by holiday demand. The report noted consumers are increasingly cautious, leading to revenue volatility, but demand for higher quality services continues to grow.

Looking ahead, holiday driven consumption is expected to remain a key growth driver, though hotels may face pressure balancing occupancy and pricing. Overall room rates are forecast to remain stable with moderate increases.

(By Helen Mo, intern Liu Shuangjing)